Question - The following assets in Jack's business were sold in 2010:
Asset Holding Period Gain/(Loss)
Office Equipment 6 years $1,100
Automobile 8 months ($ 800)
ABC Stock (capital asset) 2 years $1,400
The office equipment had a zero adjusted basis and was purchased for $8,000. The automobile was purchased for $2,000 and sold for $1,200. The ABC stock was purchased for $1,800 and sold for $3,200. In 2010 (the year of sale), Jack should report what amount of net capital gain and net ordinary income?
a. $1,700 LTCG.
b. $600 LTCG and $300 ordinary gain.
c. $1,400 LTCG and $300 ordinary gain.
d. $2,500 LTCG and $800 ordinary loss.
e. None of the above.